Quake-shattered Sichuan woos Hong Kong investors

By Louise Ho (HK Edition)
Updated: 2008-11-12 07:31

The Sichuan and Hong Kong governments are encouraging SAR businesses to invest in the earthquake-stricken province, as the investment environment there is still intact and the earthquake has even created new business opportunities.

An official delegation from the Sichuan provincial government, including party secretary Li Qibao, is visiting Hong Kong to promote investment opportunities in the province that is still recovering from the devastating earthquake that struck exactly six months ago.

Speaking at an investment-promotions event yesterday, Chief Secretary for Administration Henry Tang said that with the implementation of the state's policy of developing Western China, Sichuan has become one of the key bases for Hong Kong investors in Southwest China.

Hong Kong and Sichuan also have close business ties. The city is Sichuan's largest source of overseas investment, largest export market and third-largest trading partner.

As of Sept 3, 777 Hong Kong enterprises had invested in Sichuan.

Tang noted that Sichuan's economy would be able to develop continuously during the financial tsunami with the reconstruction projects.

Participating in reconstruction relief could bring business opportunities for Hong Kong enterprises, which could contribute to Sichuan with their advantages in areas such as financial services, logistics and construction of infrastructure, he said.

"Investing in Sichuan can help rebuild the disaster-affected areas and provide new business growth for enterprises. It is a good opportunity to create a win-win situation," he added.

Sichuan introduced 300 investment projects worth 330 billion yuan in yesterday's investment promotions event.

Some of the projects include electronics information, infrastructure, agriculture, logistics and tourism.

Party secretary Liu stressed that the earthquake has not damaged the province's productivity or investment environment.

The province still has advantages such as rich natural resources, low transportation costs and a sufficient labor force, he said.

He pointed out that the earthquake has actually provided them with a special development opportunity because the state has given Sichuan preferential policies in taxes, financing, land and jobs.

The province's economic and social developments have witnessed rapid growth since the earthquake, he said.

The province's gross domestic product increased 9.5 percent from January to September.

At the ninth Western China International Economy and Trade Fair recently held in Chengdu, Sichuan signed 264-billion-yuan worth of deals with domestic and foreign investors.

"This shows investors are still confident in Sichuan. We are still the most attractive region for investments in Western China," he said, adding that he was looking forward to seeing Hong Kong enterprises invest in Sichuan.

The Sichuan government planned to spend three years on reconstruction work to make living conditions and economic development of the province reach or exceed pre-earthquake levels.

Chinese General Chamber of Commerce Chairman Jonathan Choi welcomed the investment opportunities in Sichuan.

Sichuan has a good geographical location, and its foundations and advantages are still there, despite the earthquake, he said.

He said he believes the preferential policies given by the state could attract domestic and foreign investment.

(HK Edition 11/12/2008 page1)